J.B. Hunt price target lowered to $195 from $220 at BofA

BofA lowered the firm’s price target on J.B. Hunt (JBHT) to $195 from $220 and keeps a Buy rating on the shares. J.B. Hunt noted at a recent industry conference that BNSF had some capacity challenges, which led J.B. Hunt to stage loads at off-site yards while it waited for the rail to catch up, leading to higher transport costs. While the company refrained from quantifying costs as it needs until bid season to repair associated margin pressures, the firm lowered its Q4 Intermodal Operating Ratio forecast 100 basis points to 93.5%, which it notes would be a 70 point deterioration from Q3. The firm lowered its Q4, 2024 and 2025 EPS estimates 6%, 2% and 10%, respectively.